university of southern california Operations And Supply Chain Management Assignment Help - Job-costing spoilage and scrap.
Question - Job-costing spoilage and scrap. MetalWorks, Inc., manufactures various metal parts in batches as ordered by customers, and accounts for them using job costing. Job 2346-8, a large job for customer X, incurred $240,000 of direct materials costs and $620,000 of direct labor costs. MetalW orks applies overhead at a rate of 150% of direct labor cost. MetalWorks quoted customer X a fixed price for the job of $2,000,000. The job consisted of 90,000 good units and 10,000 spoiled units with no rework or disposal value. The job also created 200 pounds of scrap which can be sold for $3 per pound. 1. Calculate the gross margin MetalW orks will earn for this job, assuming the scrap sale is treated as material, and a. all spoilage is considered ...Read More
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